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1. alumin+(OP)[view] [source] 2023-11-19 00:08:08
Microsoft is also OpenAI's main cloud provider, so they certainly have some leverage.
replies(1): >>fnordp+vc
2. fnordp+vc[view] [source] 2023-11-19 01:31:40
>>alumin+(OP)
Aws is JP Morgan’s main cloud provider, and Apples too. Do you think aws has leverage over JPMC and Apple due to that? Or does JPMC and Apple have leverage over aws?

Azure gets a hell of a lot more out of OpenAI than OpenAI gets out of azure. I’ll bet you GPT4 runs on nvidia hardware just as well regardless of who resells it.

replies(2): >>cthalu+Nd >>wwtrv+nl
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3. cthalu+Nd[view] [source] [discussion] 2023-11-19 01:41:53
>>fnordp+vc
I think the larger issue here is that there's just not enough of that nvidia hardware out there if Microsoft decided to really play hardball, even if it hurts themselves in the short term. I don't know that any of the other cloud providers have the capacity to immediately shoulder OpenAI's workloads. JPMC or Apple have other clouds they can viably move to - OpenAI might not have anyone else that can meet their needs on short notice.

I think the situation is tough because I can't imagine there aren't legal agreements in place around what OpenAI has to do to access the funding tranches and compute power, but who knows if they are in a position to force the issue, or if I'm write in my supposition to begin with. Even if I am, a protracted legal battle where they don't have access to compute resources, particularly if they can't get an injunction, might be extremely deleterious to OpenAI.

Perhaps Microsoft even knows that they will take a bath on things if they follow this, but don't want to gain a reputation of allowing this sort of thing to happen - they are big enough to take a total bath on the OpenAI side of things and it not be anything close to a fatal blow.

I was more skeptical of this being the case last night, but less so now.

replies(1): >>fnordp+ue
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4. fnordp+ue[view] [source] [discussion] 2023-11-19 01:46:31
>>cthalu+Nd
But why would Microsoft do anything to hurt their business in any way? They are almost certainly more furious for the way they found out than the actual action taken. Given how much Microsoft has bet their business on OpenAI (ask yourself who replaces bing chat? Why does anyone actually use azure in 2023?) being surprised by structural business decisions in their most important partner is shocking, and I think if I were the CEO of Microsoft I would be furious at being shocked more than pining in some weird Altman bromance.
replies(3): >>riboso+9l >>qwytw+Fl >>lazyas+0m
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5. riboso+9l[view] [source] [discussion] 2023-11-19 02:25:26
>>fnordp+ue
Microsoft finally has a leg up on Google in the public eye and they're gonna toss it away for Sam Altman? Seems dicey.
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6. wwtrv+nl[view] [source] [discussion] 2023-11-19 02:26:50
>>fnordp+vc
JP Morgan and Apple can actually afford to pay their cloud bills themselves. Open AI on the other hand can't.

> I’ll bet you GPT4 runs on nvidia hardware

Yes but they'll need to convince someone else like Amazon to give to them for free and regardless what happens next Microsoft will still have a signficant stake in OpenAI due to their previous investments.

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7. qwytw+Fl[view] [source] [discussion] 2023-11-19 02:29:17
>>fnordp+ue
> I would be furious at being shocked more than pining in some weird Altman bromance.

Hypothetically he might also have very little trust in the decision making abilities of the new management and how much their future goals will align with those of Microsoft.

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8. lazyas+0m[view] [source] [discussion] 2023-11-19 02:31:18
>>fnordp+ue
> Why does anyone actually use azure in 2023?

When I see it, it has always been “Amazon is a competitor and we don’t buy from competitors”.

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